US Stocks Finish Lower Amid Renewed West Asia Tensions
NEW YORK, May 5 (Bernama-Xinhua) -- US stocks ended lower on Monday as renewed tensions in west Asia rattled investors and a competitive shift in the shipping industry weighed heavily on the broader market, reported Xinhua.
The Dow Jones Industrial Average fell by 557.37 points, or 1.13 per cent, to 48,941.90. The S&P 500 sank 29.37 points, or 0.41 per cent, to 7,200.75. The Nasdaq Composite Index shed 46.64 points, or 0.19 per cent, to 25,067.80.
Ten of the 11 primary S&P 500 sectors ended in the red, with materials and industrials leading the laggards by losing 1.57 per cent and 1.17 per cent, respectively. Meanwhile, energy bucked the trend by rising 0.85 per cent.
Markets slid into negative territory following reports that two Iranian strikes hit a US patrol boat and a US warship was forced to turn back in the Strait of Hormuz.
While the United States officially denied the reports from Iranian media outlets, geopolitical anxieties worsened after the United Arab Emirates reported that both an oil tanker operated by the Abu Dhabi National Oil Company and the Fujairah export terminal had been struck.
The renewed regional hostilities triggered a sharp rally in oil prices. West Texas Intermediate crude for June delivery gained US$4.48, or 4.39 per cent, to settle at US$106.42 a barrel on the New York Mercantile Exchange. Brent crude for July delivery went up US$6.27, or 5.8 per cent, to close at US$114.44 a barrel on the London ICE Futures Exchange.
On the macroeconomic front, US factory orders for March came in higher than expected, largely spurred by soaring demand for electronic components that underpin artificial intelligence technology. According to data released by the Commerce Department on Monday, factory orders rose 1.5 per cent for the month, marking the largest increase since November.
In corporate developments, the logistics sector emerged as a major sore spot after Amazon announced plans to open its proprietary freight, distribution, fulfillment, and parcel shipping network to outside businesses. The move sent shockwaves through the shipping industry, causing GXO Logistics to drop 17.7 per cent, while UPS and FedEx declined 10.47 per cent and 9.11 per cent, respectively.
Looking ahead, Wall Street is bracing for a busy week of corporate earnings, highlighted by results from major semiconductor manufacturers such as Lattice Semiconductor, Advanced Micro Devices, and Arm Holdings. Investors are also closely anticipating reports from Palantir and Paramount Skydance later in the week.
--BERNAMA-XINHUA
